HC Deb 30 May 1962 vol 660 cc1354-6
34. Mr. Millan

asked the Secretary of State for Scotland what communication he has had from the Electricity Consultative Council for the North of Scotland district regarding the recently announced price increases for electricity; and what reply he has sent.

39. Mr. Ross

asked the Secretary of State for Scotland whether the Electricity Consultative Council for the North of Scotland district approved the recently announced electricity price increases for its area.

Mr. Maclay

The Electricity Consultative Council for the North of Scotland district wrote to me setting out its objections to the Board's proposed tariff increases and on 11th May I met a deputation from the council. After considering its arguments I wrote to it explaining that by relating the Board's financial objective under the White Paper (Cmnd. No. 1337) not to the capital employed but to the increases in tariffs which would have to be made by the South Board, I had taken account of the different circumstances of the North of Scotland Board's area. I also emphasised the importance of the Government's policy of ensuring that the finances of the nationalised industries should be put on a sound basis and that for this reason I could not accept its representations.

Mr. Millan

Is not this the first time the Consultative Council has made representations against a price increase, and has not it done so because the Hydro-Electric Board did not want to increase its prices but was forced to increase them by the Secretary of State? Is not this a thoroughly regrettable decision and has it not caused considerable disquiet throughout Scotland, particularly with regard to the effect it is likely to have on Highland development and industry?

Mr. Maclay

The hon. Gentleman is correct in saying that this is the first time the Consultative Council has made representations in this respect. Every other electricity board in Great Britain has increased its tariffs since the last increase of the North of Scotland Hydro-Electric Board, and, as the latest fixing of the Board's target maintains its relative position in comparison with charges in other areas, this should not introduce any new factor affecting depopulation or the attraction of new industry.

Mr. Speaker

Mr. Millan.

Mr. Ross rose

—

Mr. Speaker

I beg the hon. Gentleman's pardon. He was so far from his usual place that I failed to see him.

Mr. Ross

You will be aware, Mr. Speaker, that the Electricity Board that we are discussing is very far from other electricity boards. It also has special responsibilities to industry. We therefore expect it to be treated differently when it comes to charges. Is not the right hon. Gentleman aware that these increases have caused considerable dismay and will undermine the good work done by the Board with the very reasonable co-operation of the Consultative Council? Will the right hon. Gentleman reconsider this matter?

Mr. Maclay

No, I will not reconsider it. If the hon. Gentleman studies the Answer which I have given, he will see the reasons for the decision which I made. The effect of this increase in charges on an average house in the area is 6d. a week, on an average small farm 10½ d. a week, and on an average large farm not more than 3s. 6d. a week.

41. Mr. G. M. Thomson

asked the Secretary of State for Scotland what representations he has had from consumers concerning the price increases recently announced by the North of Scotland Hydro-Electric Board.

Mr. Maclay

None Sir, though I did receive representations on behalf of consumers from the Electricity Consultative Council.

Mr. Thomson

Is the right hon. Gentleman aware that consumers are supposed to be represented by the Consultative Council? What is the use of this Council if, for the first time in fourteen years it disagrees with an increase in price, the Secretary of State overrides both it and the Board itself? Is the right hon. Gentleman aware that, by his decision to pay attention to accountants more than to crofters, he is betraying the original spirit of the Act?

Mr. Maclay

No, Sir. What I said earlier is correct— that in improving the economic scene in the Highlands we must build on sound foundations. That I am determined to do.

Mr. Millan

In view of the unsatisfactory nature of the reply, I beg to give notice that I shall seek to raise this matter on the Adjournment.